MTFTA : TRADE IN GOODS

 

  • The Agreement outlines commitments from both countries on liberalization of trade in goods. Malaysia and Turkey will progressively reduce or eliminate tariffs on substantial number of products traded between both countries.

 
  • Malaysia's commitment involves tariff reduction/elimination on 98.86 % from the total tariff lines based on modalities as follows:

 

Modalities

Description

 Tariff lines

 %

Fast Track (FT)

Immediate Elimination Upon Entry Force of MTFTA enter into force.

7317

70.38

Normal Track (NT)

Gradually reduced and eliminated on the third year from date of MTFTA enter into force.

1040

10.00

Sensitive Track (ST)

Gradually reduced and eliminated on the fifth year from date of MTFTA enter into force.

1725

16.59

Highly Sensitive Track (HST)

Gradually reduced on the eighth year from the date of MTFTA enter into force.

196

1.89

 
  • Malaysian importers may enjoy the benefit from immediate elimination of duties for the following products.

 
  • Upon realisation of the FTA within 8 years, Turkey will eliminate duties on 87% of tariff lines based on modalities as follows:

 

Modalities

Description

   

Tariff lines

%

Fast Track (FT)

Immediate Elimination Upon Entry Force of MTFTA.

8309

68.70

Normal Track (NT)

Gradually reduced and eliminated on the 3rd year from date of MTFTA enter into force.

302

2.50

Sensitive Track (ST)

Gradually reduced and eliminated on the 5th year from date of MTFTA enter into force.

877

7.25

Highly Sensitive Track (HST)

Gradually reduced on the 8th year from the date of MTFTA enter into force.

898

7.43

 
  • Upon entry into force of the FTA, Turkey will reduce these duties by 30% one- off (margin of preference), for palm oil products such as Crude Palm Oil, Processed Palm Oil, Crude Palm Kernel Oil and Processed Palm Kernel Oil.

  • For textiles, Malaysian exporters are given immediate elimination of additional customs duties (ACD) which these safeguard duties are imposed over and above the MFN duties for almost 1,000 tariff lines.

  • In the case of Malaysia, the elimination of duties by Turkey through MTFTA will compensate for the withdrawal of the GSP benefits previously offered by Turkey until 31 December 2013. Therefore, with the MTFTA, Malaysian exporters can continue to gain market access at preferential duties and remain competitive in exporting to Turkey, offering further advantages to Malaysian exporters.

 

 

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